Sensex falls by 160 points, Infosys and Vedanta plunge by 2.5% and 1.8%
The Sensex has fallen by 160.32 points to 35,387 while Nifty fell by 58.5 points to reach 10,742. ONGC, YES Bank, Bharti Airtel, Asian Paints, and Tata Motors were the top gainers in Sensex while Adani Ports, Vedanta, NTPC, Infosys, and Wipro were among the major losers. Except for the healthcare sector, all sectoral indices in the Bombay Stock Exchange (BSE) were trading in negative. The realty index showed the lowest fall followed by oil & gas, power, and consumer durables. There was a sale of Rs.754.43 crore worth of shares by foreign portfolio investors while there was a purchase of Rs.824.10 crore by the domestic institutional investors.
20 June 2018
SBI going to re-open the SBI Small and Midcap Fund
SBI is going to re-open the SBI Small and Midcap Fund for investment soon. With the re-opening of this fund, the investors can now invest a maximum of Rs.25, 000 every month with effect from 16 May 2018. As a matter of fact, this small-cap fund from SBI Mutual Fund Company had stopped accepting new investments since October 2015 due constraint of the capacity of Rs.750 crore. However, according to the re-categorisation of the stocks as per the guideline of SEBI, the stocks which are not included in the list of top 250 stocks as per market capitalisation are put in the category of small-caps. Earlier, the stocks which are beyond 401st stock were considered as small stocks. But now, this new re-capitalisation process has allowed the fund managers of this scheme to select from 150 more stocks thus increasing their capacity. The SBI Small and Midcap Fund was a high-performing small-cap fund in India with a corpus of Rs.771 crore till 31 March 2018.
18 June 2018
Equity mutual funds received a strong inflow of Rs.24, 479 crore in April-May
Rs.24, 479 crore is pumped by the investors in the equity mutual fund market in April-May. Due to this strong inflow, the asset base of equity mutual funds is pushed by more than 6%. While the asset base was Rs 7.5 trillion at the end of March, it has become Rs 8 trillion by the end of May. This staggering inflow in the equity mutual fund is attributed to the enhanced cognisance about market in stability and awareness of the investor’s campaign by the industry. As per the Association of Mutual Funds (AMFI) data, following the cash inflow the market has also witnessed an investment of more than Rs.1.71 lakh crore in the equity and equity related mutual fund schemes. While the equity and equity related schemes witnessed an inflow of Rs. 12,409 crore in the month of April and Rs.12,070 crore in the month of May summing up to Rs.24,479 crore in the current financial year. This shows how experienced and mature the investors are becoming about market instability. Even there is a serious drop in the small cap and mid cap equity market, the investors are still continuing with their investment.
12 June 2018
Mutual funds leverage market lows to make entry into new categories
After the issuance of a directive by the Securities and Exchange Board of India (SEBI) on the categorisation and rationalisation of mutual fund schemes, many midsize mutual fund houses are launching New Fund Offers (NFOs). As per the directive, each category of mutual funds can have only one fund and therefore, fund houses that do not have a fund in a particular category are coming up with NFOs. Some of the NFOs launched are Invesco Equity & Bond Fund (aggressive hybrid), Mirae Healthcare (thematic healthcare), Essel Multicap Fund (multicap fund), BOI Axa Mutual Fund (arbitrage), and ICICI Prudential PHD Fund (thematic healthcare).
Fund houses are looking at the re-categorisation and the stock prices correction in May as an opportunity to introduce new schemes. NFOs have paved the way for fund houses to seal the vent in their product portfolio. Many wealth managers hold the opinion that investing in NFOs is not a good idea and investors should instead invest in existing open-ended schemes.
11 June 2018
Mutual Funds to lower expenses as per SEBI regulations
The Securities and Exchange Board of India (SEBI) has slashed the extra amount charged by mutual funds to encourage more investors to invest in these products. Mutual funds can now only charge 5 basis points to the investors. Previously, investors were charged 20 basis points. This move by SEBI will lower the cost of mutual funds stimulating more investors to invest but at the same time will translate to lower commissions for distributors. This cut in the additional expenses will apply across all mutual fund schemes.
At the moment, the extra amount charged on open-ended equity and hybrid schemes are significantly higher while for open-ended debt schemes, the charge is lower. 5 basis points are being credited back in the case of the former whereas for the latter, an average expense of 18-20 basis points has been charged extra.
5 June 2018
Top small and mid-cap funds in the market
Small cap funds rose to an average of 60% during the last year while the mid-cap funds registered moderate returns. In the mid-cap segment, the ones that continue to offer attractive returns are SBI Magnum Multicap, Principal Emerging Bluechip, and L&T Midcap. Among small-cap funds, the ones offering good returns are Reliance Small Cap, DSP BlackRock Small Cap Fund.
In the small-cap segment, the returns offered by the best performer and the average performer shows a significant difference. Therefore, while investing investors should consider the returns offered for at least a term of 5 years.
21 May 2018
Mutual Funds Continue to be Appealing
During the month of April 2018, investors were recorded to have injected Rs.1.4 lakh crore into mutual funds, thereby increasing the AUM to Rs.23.35 lakh crore, which marked a 9% growth over the month of March, and 20% from the same period a year ago. The mutual fund industry’s AUM on the 31st of March 2018 was recorded at Rs.21.36 lakh crore, as revealed by information from AMFI (Association of Mutual Fund in India). Although equity markets in the country have been volatile and there are concerns regarding increasing fuel prices, the increasing preference of investors towards financial assets over investment in gold and real estate has led industry experts to believe that mutual funds will record higher inflows.
10 May 2018
Quarterly Average AUM of the Mutual Fund Industry Increases by 3.1%
The Quarterly Average AUM (Assets Under Management) of the mutual fund industry increased by 3.1% as Rs.68,495 was added in the fourth quarter of FY 2017-18. ICRA Online, which is a major provider of analytical services and information to the financial industry, had recently released its quarterly report on India’s mutual fund sector, saying that the rise in industry assets was thanks to benign capital markets for a major part of the financial year in addition to investor awareness campaigns such as “Mutual fund sahi hai” as well as healthy retail participation, particularly from B-15 investors. In the fourth quarter of FY 2017-18, around 48.6 lakh new portfolios were added to the mutual fund industry.
9 May 2018
Launch of Nifty equity savings index for mutual funds
India Index Services & Products Ltd. (IISL) has announced the introduction of the Nifty equity savings index that will be a benchmark for equity savings funds. This index will capture the portfolio performance of equity, equity arbitrage, and debt instruments.
Mukesh Agarwal, the CEO of IISL, mentioned that the newly-launched Nifty equity savings index will be perfect for filling the gap that existed for a relevant benchmark for equity savings funds categories of mutual funds. It will capture price return & dividend or coupon income. The base date for the Nifty equity savings index is 1 April 2005 and the index will be calculated at the end of the day. The base value for the index is 1,000.
26 April 2018
Mutual fund investments surge in India
Investments in domestic mutual funds and insurance firms in some of the most reputed companies in India rose to the highest ever figures in the March quarter. As per the data issued by Capitaline, when the March quarter ended, domestic institutional investors (DIIs) held 11.5% in the BSE 500 index. This aggregates to 88.11% of the total market capitalization in India. The data was based on the available information from 381 firms out of the total 500.
DIIs held 11.32% shares in companies in three months ending December and 10.12% during the same period the previous year. Analysts are of the opinion that savings post demonetisation and lack of availability of other asset classes with good returns have prompted investments into equities. There is no alternative (TINA) has been playing out in the markets off late, as traditional investment avenues have been performing badly. The trend will change only when other asset classes start showing attractive returns.
25 April 2018